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(From left) Mr Norman Sorensen, President, Principal International; Mr S.S. Kohli, Chairman & MD, Punjab National Bank, and Mr M.S. Kapur, CMD, Vijaya Bank, at a press conference in Mumbai on Friday. — Paul Noronha

Mumbai , July 2

PRINCIPAL Asset Management Company Ltd (AMC) on Friday announced its alliance with Punjab National Bank (PNB) and Vijaya Bank. While PNB has acquired 30 per cent stake, Vijaya Bank 5 per cent stake in Principal AMC. The company is now called Principal PNB Asset Management Company (in partnership with Vijaya Bank).

The AMC is targeting to breach the Rs 10,000-crore assets under management figure over the next twelve months. Currently, the company manages Rs 4,825 crore of assets.

"The company would also aspire to be three times its current size in two years' time," said Mr Norman Sorensen, President Principal International, Inc.

PNB acquired 13 per cent at book value and 17 per cent at market value for an outlay of Rs 35 crore.

Vijaya Bank paid Rs 7 crore, with 4 per cent stake at market value and 1 per cent at book value.

The AMC will use the reach of the banks to offer mutual fund products especially to the retail segment of investors, said Mr Sanjay Sachdev, Chief Executive Officer, Principal AMC.

"The tie-up is yet another step in our ever continuing endeavour to understand customer needs and introduce new avenues to meet those needs. The tie up will help our products reach a wide base of new investors in new expanding markets," said Mr. S S Kohli, Chairman and Managing Director, PNB.

The new company will foray into many innovative ventures, stated Mr M.S. Kapur, Chairman and Managing Director, Vijaya Bank.

The AMC plans to grow organically and inorganically. "We are open to acquisition opportunities," said Mr. Sorensen.

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